Lebanon secures oil deal with Iraq to ease energy crisis

In an effort to combat its ongoing energy crisis, Lebanon has secured agreements with Iraq to increase fuel supplies.

The two countries announced on Tuesday that Iraq will boost the volume of heavy fuel oil supplied to Lebanon by 50% to 1.5 million metric tons this year, while also providing 2 million metric tons of crude per year under a commercial deal.

The heavy fuel oil is exchanged for gas oil that Lebanon can use at its power stations, which have struggled to operate during the country’s financial crisis.

The commercial deal includes a deferred payment mechanism for six months and takes competitive international prices into account.

These agreements are part of Lebanon’s efforts to improve power provision and emerge from years of economic crisis.